By: Eric Richer, Associate Professor and Field Specialist, Farm Management, OSU Extension; Carl Zulauf, Professor Emeritus, OSU Department of Agricultural, Environmental, and Development Economics; and Aaron Wilson, Assistant Professor and Field Specialist, Ag Weather and Climate, OSU Extension
Note: this is a cross posting of an article posted on the Farm Office Blog on May 29.
According to the May 27 Crop Progress Report by USDA National Ag Statistics Service, Ohio had only 54% of corn planted, well behind the 5-year average of 73% planted. In 2024, 74% was planted by this report date. In 2019, a year with significant planting delay, only 22% of the corn had been planted by this report date. In that year, the wettest spring conditions were confined to northwest Ohio. In contrast, much more of the state has received well above average precipitation in 2025, with areas near the Ohio River and northeast Ohio seeing the largest difference compared to normal.
The lag in corn planting progress this year has prompted increasing interest in evaluating the Prevented Planting option available through multi-peril crop insurance. The purpose of this article is to walk through the options, mechanics, and economics of electing prevented planting for your corn crop utilizing 2025 values.
We are not crop insurance agents, so our most important message is that for those thinking about prevented planting talk sooner rather than later with your insurance agent.
In Ohio, June 5 is the date at which prevented planting becomes an electable option. For soybeans, the date is June 20.
As of June 5, a farmer who has individual farm yield (YP) and revenue (RP and RP-HPE) insurance for corn has 3 basic options:
Option 1: Plant corn. Until June 5, you are eligible for your full guarantee at the coverage level you elected. Using the 20-year USDA-NASS Trendline Ohio corn yield of 190 bu/acre as the Actual Production History (APH) insurance yield and the $4.70/bu 2025 projected insurance price for corn, the full guarantee at 80% coverage is $714/acre (190 x $4.70 x 80%). If you elect to plant corn after June 5, your guarantee declines 1% per day through June 25. For example, if you plant corn on June 8, the guarantee formula (190 APH, 80% coverage) would be: 80% x 190 bu/ac x $4.70 x 97% = $693/acre. If you plant after June 25, you can choose not to insure your corn crop or you can insure at the policy’s prevented planting revenue level. Planting dates need to be recorded, as rules apply on a field-by-field and acre-by-acre basis.
Option 2: Switch from corn to another crop, most likely soybeans. You are charged the soybean insurance premium, not the corn premium. A key agronomy question: Did you apply a chemistry that prevents you from planting soybeans? June weather (local and regional), supply/demand economics, geo-political issues, trade policy and input options increase the complexity of this decision.
Option 3: File for prevented planting, assuming corn is not planted by June 5. The mechanics of prevented planting are important. To qualify for prevented planting, a crop must have been planted, harvested, and insured on the acres in question in one of the last four years. Prevented planting acres must total at least 20 acres or 20% of the insured land unit (lesser of the two). Consult your crop insurance agent to determine your total eligible acres, as this is a key question. Also, prevented planting claims can be denied if prevented planting is not common in your area.
A corn policy has a standard 55% prevented planting guarantee (buy-up available to 60%). To be very clear, the Harvest Price Option does not apply. Prevented planting indemnity payments are not re-adjusted to a higher harvest price. Prevented planting does not affect your yield history as long as you do not plant a second crop.
To continue our example from above, the indemnity payment for prevented planting corn would be: 190 bu/ac x $4.70 x 80% coverage x 55% prevented planting rate = $393/acre. Please remember that this calculation can vary widely based on coverage level elected (50-85%), prevented planting buy up (55% to 60%) and the insured APH yield for the claimed acres. In our example, this $393/acre would also be the amount at which you could chose to insure a corn crop planted after June 25 (versus no insurance at all).
In comparing and evaluating the three options, questions to ask include:
- What inputs (fertilizer, chemicals, etc.) have already been applied?
- Will you need to pay ‘restocking fees’ for returned seed or other inputs?
- Does my applied chemistry limit my options?
- What are the year-long weed control costs?
- If utilizing cover crops, what will their cost be?
- Is the land owned, or cash or share rented?
- Will the prevented planting indemnity cover costs already incurred and the fixed costs of Land, Labor, and Management?
- What do I save on machinery wear and tear by not planting and harvesting?
- What are potential additional drying costs due to late harvesting?
- What is my expected price at harvest?
- Are there missed opportunity costs (marketing) because of taking prevented planting?
- What effect does your crop insurance unit structure have on your decision?
- What are livestock feed needs?
- Are there costs associated with not fulfilling forward contracted corn?
- Do I want to tile the field?
This article does not address these questions, but you should address them and probably already have started to do so.
Prevented planting insurance payments can qualify for a 1-year deferral for inclusion in income tax. If this is a consideration for you, please talk to your insurance agent and tax professional as specific conditions must be met. Check out a previous farm office blog for more insight.
A summary comparison is net return to the prevented planting option vs. net return to planting a crop. This comparison involves a number of assumptions about price, yield, and cost. This is decision making under uncertainty. Your assumptions may or may not turn out to be accurate.
Reporting prevented planting acres, should you elect that option, is quite simple. To report prevented planting acres, you first need to turn in a notice (starting June 6) to your insurance agent. Then report prevented planting to USDA Farm Service Agency to get it on your acreage report. Then, work with your adjuster to finalize the claim, which will generally be paid within 30 days. NOTE: total acres of prevented planting corn that you can file in 2025 cannot exceed the greatest number of acres of corn you reported in any of the previous four years (2021-2024).
Every farmer’s situation has unique considerations. We encourage you to run the numbers for yourself and make an informed farm management decision with the tools you have available and in consultation with your crop insurance agent.
References:
Richer. E., Bruynis, C. (2019). Prevent plant…What’s That Again? OSU’s Ohio Ag Manager Blog. https://u.osu.edu/ohioagmanager/2019/05/23/prevent-plantwhats-that-again/
Richer. E., Bruynis, C. (2022). Evaluating the Prevent Plant Option. OSU’s Ohio Ag Manager Blog. https://u.osu.edu/ohioagmanager/2022/06/09/evaluating-the-prevent-plant-option/
USDA National Agricultural Statistics Service (2025). Crop Progress-May 27, 2025.https://downloads.usda.library.cornell.edu/usda-esmis/files/8336h188j/8049j4596/gx41pg805/prog2125.pdf
USDA National Agricultural Statistics Service (2019). Crop Progress-May 28, 2019. https://downloads.usda.library.cornell.edu/usda-esmis/files/8336h188j/4b29bg92m/8910k3910/prog2219.pdf
USDA Federal Crop Insurance Corporation (2024). Prevented Planting Standards Handbook. November 11, 2024. https://www.rma.usda.gov/sites/default/files/2024-11/2025-25370-Prevented-Planting-Standards-Handbook.pdf
